Derai is an upazila (sub-district) of the Sunamganj District in northeastern Bangladesh, part of the Sylhet Division.
It was home to two influential Hindu residents; Jitarāma and Dvidarāma, who renamed the area to Derai Bazar.
During the Bangladesh Liberation War of 1971, a brawl took place in Derai between the Pakistan Army and Bengali freedom fighting forces.
Among the freedom fighters here, Commander Ataur Rahman and Abdul Khaliq were wounded with Azimullah, Kuti Miah and Gopendra Das being killed.
Derai had a literacy rate (age 7 and over) of 37.13%, compared to the national average of 51.8%, and a sex ratio of 987 females per 1000 males.